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Market Tips: Why the Rally Is Short-Lived

CNBC.com
Monday, 30 Mar 2009 | 7:40 AM ET

Global stocks were in the red Monday after a U.S. task force rejected turnaround plans for General Motors and Chrysler, sparking a fresh wave of risk aversion among investors. Experts tell CNBC how to invest throughout the credit crunch.

Market Sentiment Hasn't Changed

Despite the recent rally in equity markets, Hans Goetti is CIO of LGT Bank in Liechtenstein tells CNBC that sentiment really hasn't changed and that the rally will only last for a few weeks.

Fundamentals Still Not Strong

Despite the recent bounce in the markets, fundamentals are still not strong, notes Mark Fuchs, CEO at Fuchs Capital Partners. He tells CNBC why South-east Asian investments are a better bet.

Still in a Bottoming Phase

The GM news is "disconcerting," according to Vince Farrell from Soleil Securities. "We're trying to go through a bottoming process and that's going to take whatever news headline is necessary to test the lows that we've seen… A bottoming process takes about a year, with multiple tests of the lows, and we're still in that phase."

Long-Term Bear Turns Bullish on Stocks

"It's an end of month, end of quarter, and for many people, end of year-end selloff which started on Friday afternoon," Michael Browne from Sofaer Global Research said Monday. He thinks it's a "nice opportunity" to be investing in stocks.

Pick Strategic Opportunities

Opportunities should be taken as part of strategy, not just to buy at a good price, advises Ralph Norris, CEO of the Commonwealth Bank. He speaks to CNBC about taking advantage of the next economic cycle.

Diversify Your Investments

Diversifying your investments is the best way to ride out the volatility, advises Gareth Hulbert, portfolio manager at Macquarie Private Portfolio Mgmt, while Matthew Williams of Perpetual Investments explains why he is overweight Australian banks.

More Buying Opportunities to Come

The bear-market rally in stocks isn't over yet, but investors shouldn't worry if they've missed this one as there will be another buying opportunity later, Robin Griffiths from Cazenove Capital told CNBC.

Bullish on Gold

Evy Hambro, managing director and portfolio manager at BlackRock, says demand and supply fundamentals will support an uptrend in gold.

Investing in India

Investors should hedge using options, advises Aadil Ebrahim, director at Bazargate Consultants.

Speculation Drives HK Markets

Investor picks in the Hong Kong market is dependent upon speculation of the recovery of the global economy and a weak US dollar, says Marco Mak, an analyst at Tai Fook Securities.

Optimistic on Vietnam

Vietnam is an outperformer, says Prakriti Sofat, economist at HSBC. She shares her upbeat outlook on the economy.

Positive on Indonesia, Cautious on Thailand

Mark Fuchs, CEO at Fuchs Capital Partners is cautious on Thailand but positive on Indonesia.

Taiwan Index to Face Profit-Taking

Seow Hock Hin, senior vice president for institutional sales at MF Global, says the Taiwan market should see some profit-taking after chip makers chalked hefty gains last week. Panel makers will also be in focus, he added.

Defensive Plays in Australia

Stick to defensive stocks, says Stephen Ellis, client advisor at Patersons Securities.

Contact Europe: Economy

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